Cyber liability coverage insurance and Cyber Crime insurance are both types of insurance that can protect businesses from the financial losses that can result from a cyberattack. However, there are some key differences between the two types of insurance.
Many people that purchase Cyber Liability Insurance believe they are also getting Cyber Crime Insurance policy as well. This is sometimes true but most of the time is false.
In general, the below is usually the case.
Cyber liability coverage covers the costs of a data breach or other cyberattack, such as:
*The cost of notifying customers and clients of the breach
*The cost of providing credit monitoring and identity theft protection to affected individuals
*The cost of legal defense and settlements if your business is sued as a result of the breach
*The cost of regulatory fines and penalties
Cyber crime insurance covers the direct financial losses that your business suffers as a result of a cyberattack, such as:
*The theft of money or data
*The damage to your computer systems
*The cost of ransomware
In addition, cyber crime insurance may also cover the cost of business interruption if your business is unable to operate as a result of the cyberattack.
It is important to note that not all cyber liability insurance policies or cyber crime insurance policies will cover the same things. It is important to read the policy carefully to understand what is and is not covered.
If you are considering purchasing cyber liability insurance or cyber crime insurance, it is important to speak to an insurance agent to get a quote and to understand your options.
Here are some additional things to consider when choosing between cyber liability insurance and cyber crime insurance:
*The size and industry of your business
*The amount of data that you collect and store
*The level of security that you have in place
Ultimately, the best type of insurance for your business will depend on your specific needs and circumstances. Make sure you evaluation these protection options as you are choosing between cyber liability coverage and cyber crime insurance.